The Role of Law in Economic Development Process within the Context of the Islamic World: de-linking oil and gas projects and re-linking legal reform

In many Islamic countries, particularly the stable oil-rich Arab States; it appears that outside of oil and gas projects and a few specific infrastructure projects, far less real economic development has taking place than would have been expected. This is considering the immense endowment of both natural and human resources in the region. The research argues that the issue centres on the role of Law and the formal legal system in development process. In many Islamic countries, outdated legal environment and legal frameworks largely based on the outworn old UK Law that have remained non-updated (i.e. weak legal reform) and merged with Sharia, which realistically are not compatible with the present-day development. While there are efforts to have different Law for some countries; for example, the Dubai free trade zones – Jebel Ali in the 1970s probably was the first major development of its kind; however, the Law beyond the realm of business still needs revision in these States. The research examines the role of Law and the formal legal system in the economic development process, with a focus on the stable oil-rich (Gulf) Arab States. The research uses the structural-functional legal theoretical approach, interdisciplinary and critical-analytical perspective within the framework of (international) law and development. It employs qualitative empirical evidence from developed and developing countries.